WHAT YOU MUST KEEP IN MIND WHEN FILING INCOME TAX RETURN (ITR) IN 2023

Every year many taxpayers in India commit a mistake by expecting that the income tax due date will be extended. However, we advise you to file your return right away and without making any delay. You can prevent unnecessary stress and penalties by being proactive and filing your return as soon as you can. Now you don’t need to worry about the efiling of income tax. The process of filing taxes has been streamlined and made easier with modern advancements in technology. There is no need to delay the process if you have all the necessary documents. In fact, the whole procedure can be finished successfully in just 30 minutes.

If you need further help or guidance you can get in touch with our reputed chartered accountant firm in India anytime. The team of DSRV India would be happy to provide you with a smoother tax filing experience and assist you in all kinds of taxation services. This detailed guide will highlight the crucial factors to take into account when submitting your income tax return. These are the most important things to keep in mind while filing ITR. So, let’s get started and learn the key factors to consider while filing your income tax return.

Recommended: International Tax Planning Strategies: Overview

Various Types Of Income Tax Return Form

Form of Income Tax 1

This form is also known as SAHAJ and it is meant for the people whose total income is up to Rs. 50 lakh which can come from a salary, residential property, and other sources.

Form of Income Tax 2

This form is for individuals having an income of more than Rs. 50 lakh from salary, house property, capital gains, and other sources.

Form of Income Tax 3

Partners in a business are paid by the business in the form of interest, wages, bonuses, commissions, or other compensation.

Form of Income Tax 4

Also known as SUGAM, this ITR form is for individuals whose annual income is not greater than Rs 50 lakhs. The including income from businesses and professions estimated on a presumptive basis.

Form of Income Tax 5

This form is for LLPs, BOIs, AOPs, artificial juridical entities, and cooperative societies.

Form of Income Tax 6

It is meant for businesses that are not seeking exemption under section 11 which is revenue from property kept for charity.

Form of Income Tax 7

This form is for individuals and businesses who must file returns under Sections 139(4A), 139(4B), 139(4C), and 139(4D).

Important Documents Required For Income Tax Online Filing

According to the leading tax consultant in Gurgaon, these are some important documents needed for filing income tax online in India.

• Permanent Account Number (PAN)
• Aadhaar Card
• Form 16
• Form 16A/16B/16C
• Form 26AS
• Bank Account Statement
• Salary Statement
• Certificate Of Interest
• Certificate Of TDS
• Investment Statements
• Previous Year's Tax Return

What Are The Basic Requirements To File Income Tax Return?

A person looking for income tax filing must have a valid login id and password and must be signed up on the e-filing website.

Your PAN card must be operational.

The Aadhaar card and PAN card must be linked.

The account has already been confirmed.

You need a valid mobile number linked to your Aadhaar, e-filing website, or your bank (NSDL/CDSL) for electronic verification.

Read More: Vital Reasons Why You Need A Tax Consultant

Things To Keep In Mind While Filing Income Tax Return

Here we have listed some important points that you must consider while filing an online income tax return in India.

Choose A Tax Regime That Will Benefit You More

With the updated tax slabs and rates provided by the Finance Act of 2020, taxpayers no longer have to rely on exclusions and deductions. When filing their tax return, taxpayers can now opt for the old or modified tax regime. Salaried people can switch to the new regime, which they may have already chosen when submitting their ITR to their employer.

Importance Of Following Income Tax Deadline

In India, it is crucial to keep in mind the income tax ITR filing due date to avoid fines for late filing, and the inability to carry forward any losses. Assesses may have trouble meeting the deadline for a variety of reasons. But you must check the taxable income, verify your documentation, and calculate the final tax payable to prevent any penalties.

Choose The Correct ITR Form

The different ITR forms cater to various types of taxpayers and income categories. So, make sure to choose the right ITR form based on your sources of income, where you live, and other relevant information.

Report All Sources Of Income

Before filing income tax return India you should include every source of income. It must include your salary, company income, capital gains, dividends and interest. The information you are providing on each source of income should be accurate and detailed.

You Must Have An Aadhar Card To File Income Tax

When submitting an income tax file, people need to provide their Aadhaar number under Section 139AA of the Income-tax Act, 1961. If you don't have an Aadhaar number but have applied for it, you need to enter your enrollment ID in the ITR form as per the requirement.

Declare Exempt Income

Make sure to accurately state any taxable income, such as agricultural income or certain allowances, in the relevant parts of the ITR form.

Claim Deductions And Exemptions

To reduce your tax liability, make use of all available deductions and exemptions. Common tax deductions include Section 80C (for investments like Provident Fund, ELSS, etc.), Section 80D (for health insurance premiums), and Section 80G (for charitable contributions).

Reconcile With Form 26as

Verify the information in your ITR against the data on Form 26AS. It offers a consolidated view of tax deducted at source (TDS) and other tax-related data. To prevent any discrepancies, double-check the figures.

Maintain Supporting Documents

Keep all important documents like Form 16 and Form 16A, investment records, bank statements, and other proofs of your income. These documents may be required for verification or in case of an audit.

Keep A Copy Of The Filed Return

After submitting your ITR, be sure to keep a copy of the filed return, the acknowledgment receipt, and any relevant documents. Having a record will be useful in the event of future queries or requirements.

Seek Professional Advice If Needed

If you have complex income sources, or if you are unsure about any aspect of efiling income tax India, feel free to consult our tax professional. Our skilled and qualified chartered accountants are always available to provide professional advice catered to your unique needs. Trust our expertise to get the best financial results and peace of mind.